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Country-level governance and sustainable development goals: implications for firms’ sustainability performance

Faozi A. Almaqtari (Department of Accounting and Finance, College of Business Administration, A'Sharqiyah University (ASU), Ibra, Oman)
Tamer Elsheikh (Department of Accounting, Faculty of Commerce, Kafrelsheikh University, Kafrelsheikh, Egypt)
Khaled Hussainey (Faculty of Business and Law, School of Accounting, Economics and Finance, University of Portsmouth, Portsmouth, UK)
Mohammed A. Al-Bukhrani (Department of Accounting, Faculty of Administrative Sciences, Albaydha University, Albaydha, Yemen)

Studies in Economics and Finance

ISSN: 1086-7376

Article publication date: 26 December 2023

280

Abstract

Purpose

The purpose of this study is to examine the impact of country-level governance on sustainability performance, taking into account the effect of sustainable development goals (SDGs) and board characteristics.

Design/methodology/approach

This study uses panel data analysis using fixed effect models to investigate the influence of country-level governance on sustainability performance while considering the effect of SDGs and board characteristics. The sample comprises 8,273 firms across 41 countries during the period spanning from 2016 to 2021. The sample is divided into two categories based on the score of SDGs.

Findings

The findings of this study show that countries with high SDGs score have better overall country-level governance and board attributes which have a statistically significant positive impact on sustainability performance. However, for those countries with low SDGs, political stability shows a statistically insignificant and negative impact on sustainability performance, while government effectiveness indicates a statistically insignificant positive impact on sustainability performance.

Originality/value

This study contributes to the literature by providing empirical evidence on the relationship between country-level governance, SDGs, board characteristics and sustainability performance. The study also highlights the importance of considering the effect of SDGs on the relationship between country-level governance and sustainability performance. The findings of this study could be useful for policymakers and firms in improving their sustainability performance and contributing to sustainable development.

Keywords

Acknowledgements

Funding: This research received no external funding.

Data availability statement: The data of this study was obtained from the Refinitiv Eikon database. The data are available on request.

Conflicts of interest: The authors declare no conflict of interest.

Citation

Almaqtari, F.A., Elsheikh, T., Hussainey, K. and Al-Bukhrani, M.A. (2023), "Country-level governance and sustainable development goals: implications for firms’ sustainability performance", Studies in Economics and Finance, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/SEF-05-2023-0272

Publisher

:

Emerald Publishing Limited

Copyright © 2023, Emerald Publishing Limited

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